Why Are Brazil Nuts Expensive?
Brazil nuts are an exotic treat that many of us enjoy. But their price tag is noticeably higher than that of other nuts. Since they grow only in the Amazon rainforest, they face supply issues and weather impacts that make them more expensive than common nuts.
In this article, we’ll look at why Brazil nuts are so expensive compared to most nuts. We’ll explore how their wild origins, sensitivity to climate change, labor needs, shipping costs, and increasing demand drive up prices.
What’s the Current Price of Brazil Nuts?
Brazil nuts generally cost around $13 to $18 per pound (0.45 kg) in the US. Sometimes, the prices dip slightly lower, but that’s the average range.
Some companies offer better deals if you buy Brazil nuts in bulk. For example, we recently saw a 5-pound (2.26 kg) bag selling for $55, which is $11 per pound.
Factors Contributing to High Prices of Brazil Nuts
Brazil nut prices are increasing due to several contributing factors. On the economic side, deforestation, demand trends, and fair wage considerations play a role. Additionally, the slow maturation of the trees combined with extreme weather events is slowing crop yields and tightening supply.
1. The Brazil Nut is a Wild Species
Brazil nuts come from the Amazon only. They are not planted or found elsewhere, meaning the production cannot be increased, naturally resulting in a higher price.
On top of that, Brazil nuts are entirely wild, with no human interference during their lifecycle. That means there is no human control over their growth and natural production. The crops may be great one year, while the following year, they may be poor. This makes Brazil nuts very exotic and expensive.
2. The Trees Are Delicate and Take a Long Time to Mature
Another reason for their high price is that Brazil nut trees require special conditions to grow and produce nuts. Even if all the requirements for its successful growth are met, it takes a long time until they mature. The trees may take up to 20 years to produce the first seeds (what we call Brazil nuts).
3. Workers Have to be Compensated for Hard and Dangerous Work
The difficulty of collecting the nuts also contributes to higher prices. As you can imagine, the trees are spread through the enormous Amazon forest. Going from tree to tree to harvest Brazil nuts requires walking great distances with equipment and carrying the nuts back. The terrain makes using vehicles in most parts of the forest impossible.
Besides that, the trees are very tall, around 160 feet, and heavy fruits fall from them. This causes accidents that can even lead to death. Such risk has to be compensated with fair prices.
It’s important to mention that most workers come from indigenous communities in the Amazon. Many of them started to leave the business years ago because it was not worth it. To give you a better idea, the selling price used to be around $0.06 per kilo. These communities were not incentivized to build their livelihoods around this industry, so the entire industry almost collapsed.
With the price increase, Brazil nut collectors are returning to the business. Now, workers can sell it at around $1.60 per kilo, more than 2000% compared to a few years ago.
4. Less Supply Leads to Higher Prices
Unfortunately, deforestation in the Amazon is impacting the Brazil nut industry. As parts of the forest are being cleared, less space is available for Brazil nut trees to grow. With fewer trees and less supply, prices will naturally grow higher.
5. Brazil Nuts Need a Costly Trip
Growing in such a remote place means Brazil nuts must go through many steps before they hit your supermarket. Once they are collected, they are sold to a cooperative that will process and package them. They are shipped and exported to the rest of the world and bought by particular brands. Only then are they distributed to shops and supermarkets.
As you can see, they are sold from one company to another until they reach the final consumer. Each of those steps increases the price. Transportation over such a long distance is also expensive. Remember that most nuts don’t need it because they are probably produced in your region.
6. Increased Demand Due to Healthy Trends
In recent years, more people have started consuming Brazil nuts. Health websites have raised awareness about healthy diets, and Brazil nuts didn’t escape the viral trends of the Internet. Brazil nuts are exceptionally high in selenium, which has made them quite trendy and earned them “superfood” status.
When the demand for a healthy and exotic product increases exponentially in developed countries, there is no way around it; prices will increase.
7. Climate Change
2017 was a very negative year for the Brazil nut industry. The El Niño brought climate changes that impacted Brazil nut crops and resulted in even higher prices. Unfortunately, it didn’t affect the crops only in that year. The ecosystem is so delicate in the Amazon that the negative effects are still visible.
Consequences of Brazil Nut’s Price Increase
Besides paying more for your Brazil nuts, this price increase has a few other negative consequences.
Brands Are Removing Brazil Nuts from Mixed Nut Packages
Even though Brazil nuts are not real nuts, they have often been included in mixed nuts until recently. The high prices are forcing some brands to exclude Brazil nuts from their packages. They do it to save money and also offer a cheaper product.
Availability in Supermarkets and Health Shops
Another consequence is that some supermarkets and health shops are no longer selling them at all. In some online shops, we’re noticing an increase in notices like “currently unavailable” or “out of stock.”
We still haven’t reached an alarming level, but this trend may grow, making Brazil nuts harder to find.
Consumers May Look for Alternatives
In light of these challenges, consumers might consider cheaper options, like almonds or walnuts. While these nuts offer different nutritional profiles and flavors, they can be suitable substitutes for many recipes.
In the end, the increasing prices of Brazil nuts can also change those specific industries.
Conclusion
Several interrelated factors explain the steep price tag on Brazil nuts compared to other nuts. Their wild origins in the Amazon, the labor-intensive harvesting process, and vulnerability to deforestation and climate change all constrain supply. At the same time, health trends driving demand for this selenium-rich nut apply further price pressure.
As Brazil nut prices continue rising, they may become scarce on store shelves. This trend highlights the need for sustainable practices to preserve this unique industry for future generations. If deforestation can be limited and climate impacts reduced, responsible harvesting of this rainforest treasure can provide livelihoods while meeting consumer demand.
